The average asking price of newly listed homes rose by 0.8% (+£3,023) in March to £371,042, marking a typical seasonal increase after February’s flat month, according to new Rightmove data released today.
The property portal says the rise reflects the start of the spring selling season, though growth remains modest.
An eleven-year high in available homes is giving buyers more choice and keeping prices in check, while improved affordability is supporting demand. However, strong competition means sellers may need to price more competitively, with the time to secure a buyer now the longest for this time of year since 2013.
Price right or risk losing buyers, new data suggests – Property Industry Eye
Industry reaction:
Adam Horton, Founder of Hortons Estate Agency says: “Spring has arrived with what I’d describe as cautious optimism in the property market. Buyer activity appears to have picked up, but with supply still relatively high, new sellers need to be disciplined on pricing from day one – overpriced stock is simply being overlooked. Price sensitivity among buyers is heightened, and the agents seeing the best results are those having honest conversations about market positioning.
“On the geopolitical situation in the Middle East, we haven’t yet seen any measurable impact on buyer or seller behaviour. That said, the longer-term effects will depend heavily on the duration of the conflict and its knock-on impact on the cost of living. If it feeds through into higher energy costs or renewed pressure on interest rates, that will be felt in household budgets and ultimately in buying power. One area worth watching closely is oil-heated properties. Unlike gas, that market is unregulated and sits outside the government’s price cap, so sellers of those homes could face a meaningful reduction in buyer appetite if running costs become a concern.”
Jeremy Leaf, north London estate agent and a former RICS residential chairman, says: “Despite inevitable worries that the present geopolitical uncertainty will increase upward pressure on inflation and mortgage payments, we have seen no price reductions or withdrawals from agreed sales in our offices other than for property-related reasons.
“Most buyers are obviously nervous about the impact of the conflict but are adopting a ‘wait-and-see’ stance for now at least.
“These figures from Rightmove reflect asking prices rather than sales values and determine whether genuine buyers are attracted so may take a little longer to reflect any change in sentiment.
“Sellers should know confidence takes a long time to build but can disappear quite quickly and the market continues to be price-sensitive, bearing in mind particularly high stock levels. However, sellers and buyers will be hoping the Bank of England keeps interest rates unchanged this week and that activity will shortly resume the steady improvement seen at the beginning of 2026.”
Nigel Bishop of buying agency Recoco Property Search said: “House hunters have been considerably more active this year and March has been no exception. The market could see another boost this month as we enter the traditionally busy spring season. General buyer and seller motivation is expected to hold momentum but some house hunters await the Bank of England’s upcoming decision to cut interest rates. This, however, looks unlikely amid the impact of current geopolitical developments on the wider economy.”
Nathan Emerson, CEO of Propertymark, said: “Consumers are generally in a far stronger position to purchase a property than they were a year ago, mainly due to serval successive base rate cuts and falls in the rate of inflation as well.
“Our member agents have reported an encouraging start to the year, with a sense of resilience when looking at the number of properties being placed for sale and the number of viewings on each available property too.
“Housing continues to play a driving role in the UK economy, and we are continuing to see progression regarding overall affordably. Across the last twelve months, we have seen a near 15% drop in the magnitude of fall-throughs reported per member branch, helping demonstrate a stronger degree of determination from both buyers and seller alike to complete on their transaction.”
Tom Bill, head of UK residential research at Knight Frank: “The UK housing market faces notably more challenging conditions than it did a fortnight ago. The Middle East conflict will keep sentiment and transaction volumes in check, while higher mortgage rates will curb spending power and put downwards pressure on prices. However, the extent of both depends on how long the disruption lasts. If there is a resolution in the short-term, the inflationary impact would be less severe and multiple rate cuts in 2026 could come back onto the table quite quickly.”
Daniel Lewis, Managing Director at FreeAgent247 says: “The start of March has brought the usual seasonal uplift in seller activity, with more homes coming to market as we move into the spring moving season. While listing prices are edging up modestly, sellers need to remain realistic and price competitively, particularly given the higher levels of available stock compared to recent years. Buyers now have greater choice, which naturally increases the importance of accurate pricing from the outset.
“Although it is still too early to fully assess whether wider geopolitical tensions, such as the Iran war, will influence home-moving decisions, the market has so far shown resilience. Demand remains steady where pricing aligns with buyer expectations, suggesting that well-presented and sensibly priced homes are still attracting strong interest as the spring market gathers momentum.”
Tomer Aboody, director of specialist lender MT Finance, says: “Plenty of stock, in line with the time of year, is keeping prices in check to an extent, which is good news for those who are keen to move.
“The north-south divide illustrates how important affordability is when it comes to people’s ability to move house. In the more expensive south, price growth is more muted as buyers face more of a struggle in raising the necessary deposit and demonstrating enough income to satisfy lenders.
“Everyone has one eye on the Middle East conflict, which could have an impact on inflation and therefore interest rates. Whereas market expectations were for at least one further rate cut in base rate this year, with inflation likely to spike as a result of the Middle East conflict, on top of existing economic policies, we could even see an interest rate increase. Hopefully, a steady hand on the tiller keeping rates where they are, rather than a kneejerk reaction that creates higher costs for homeowners, will prevail.”